However, while supporters have said the move is an important step to a 2 state agreement, other signs are not looking so bad.

Israel, one of the few countries that opposed Palestine in the vote, appears to have retaliated against Palestine. A senior government source told Haaretz that Israel is planning to build 3,000 new homes in East Jerusalem and the West Bank. The news was confirmed later today, and Palestinians have swiftly criticized the decision.

In particular, building will occur in E1, a 3,000-acre parkland area where the US has long opposed any settlements.

Some observers are concerned. Hagit Ofran, who runs the Settlement Watch project of Peace Now, told the New York Times the decision was "disastrous" and could be a "deal breaker for the two-state solution".